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HomeMy WebLinkAbout13.F.2. Energy Efficiency Projects 13,P,J-, City of Shako pee MEMORANDUM TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator ~ IJ SUBJECT: Energy Efficiency Projects DATE: November 13,2008 Introduction The following is an update on the City's work to be more energy efficient in our operations, specifically as it relates to the City's buildings. Background City staff has been exploring a variety of opportunities for reducing energy consumption in City buildings. In May of this year, Council approved entering into a letter of intent with Harris Companies to perform a comprehensive technical study for energy savings at the Community Center and Fire Station 51. As a result of their technical study, Harris Companies has presented staff with a bundled energy solutions proposal for the Community Center and, to a lesser extent, the Fire Station. We have met with Harris Companies several times to discuss the proposal and its components. The City Administrator, Finance Director, Parks & Recreation Director, Facilities Maintenance Supervisor Ice Arena Supervisor and I have all been involved in reviewing the proposal from Harris Companies. Attached are the primary documents we have received from Harris Companies regarding their proposal. At this time I am recommending that the City not proceed with the bundled energy solution proposed by Harris Companies, for the following reasons: 1. By definition, a bundled energy savings project combines multiple projects and improvements, including some that offer a significant return on investment and others that offer little or no return on investment. By carefully selecting which projects to include in the bundle, a package of projects can be identified that, as a group, have a positive return on investment. Harris Companies has maintained that this presents an opportunity to complete certain projects that wouldn't likely be approved if considered on a standalone basis. The proposal from Harris Companies bundles together six projects - five at the Community Center and one that covers both the Community Center and the Vierling Drive Fire Station - for a total project cost of just over $308,000. Given this price tag and the current status of the City's budget, staff doesn't believe that the bundled approach is appropriate at this time. We have combed through each and every line in our departmental budgets looking for costs that can be cut, and that seems to be the appropriate thing to do in this case as well. The City should select those individual projects that offer the greatest return on investment at this time and only proceed with those. 2. In addition to the six projects, Harris Companies is proposing what they call a "Guaranteed Lifetime Protection" plan. This is a comprehensive service plan that covers not only regular maintenance but also all repairs and replacements needed for the life of the contract, which Harris is proposing to be for 20 years. The cost of this plan for the Community Center starts at $84,500 the first year and increases by 3% a year each year ofthe contract. This approach has the advantage of placing all of the risk for future expenses onto Harris Companies, but it also puts the decision making into their hands - when do you repair versus when do you replace a unit? If a unit is replaced, what do you replace it with? These are questions that the City would have to relinquish to Harris Companies the authority to decide. Given these costs and tradeoffs, staff is not recommending the Lifetime Protection plan offered by Harris Companies. There are steps we can take internally to ensure proper maintenance and better manage the risks of a significant repair or replacement cost, without making these annual payments to an outside company that would receive the City's money regardless of whether or not they incurred significant costs on the City's behalf that year. Note that while we have no doubt of the claim that there would be cost savings by implementing the projects identified by Harris, we feel even greater savings may be realized by proceeding with competitive alternatives from a variety of vendors. Budget Impact If the City does not engage the services of Harris Companies, payment of $10,000 will be due to Harris as compensation for the work that they have done to date in completing the comprehensive technical study. However, we feel that even with this payment, it will be in the City's financial best interests to seek alternate providers on a competitive basis. Funding for this would come from the $25,000 line item in the 2008 budget, which was provided to initiate Green Cities/environmental projects. Funding for the specific projects the City does pursue would likely come from either the Building Fund or the Capital Improvement Fund, to be determined on a project by project basis. Recommendation Instead of proceeding with the proposal from Harris Companies, staff is recommending the following alternative approach: 1. Develop and Maintain a CIP for City Building Components. Similar to the way we schedule for vehicle and equipment replacement, staff would prepare and update a CIP that plans for replacement of building mechanical systems, roofs, elevators, etc. This would allow us to better plan for the major expense of having to replace a boiler or a roof, while keeping the final decision regarding when to replace and with what in the City's hands. As indicated by Mr. Voxland at the Council's November 5 workshop, an appropriate funding source for these projects will need to be identified. The Building Fund or the Capital Improvement Fund are the most likely candidates. 2. Expand our use of baseline service contracts in order to ensure proper regular maintenance and identify potential problems early. The City currently has this type of service contract with Owens Company for City Hall and finds it to be a good value for the dollar. We could purchase a service contract for the mechanical systems at the Community Center for $7,864 per year and may look to add additional City buildings in future years. 3. Proceed with individual energy efficiency projects as funding and the return on investment warrants. City staff is currently working on two such projects - new lighting for the Community Center and a new boiler for City Hall. If this concept is acceptable to the City Council, staffwill bring these projects forward as separate agenda items. Requested Action If the Council concurs with the recommendation not to proceed with the proposal from Harris Companies, no formal action is required. I I " I I " I By Harris Compan September 17, 2008 Agenda .. Introductions .. Process Review / History .. Review Findings .. Fi nancials .. Next Steps iii I A 'III I 1~lli:, - j ;<')<);j ;'!:~ If. :,~,.~'" .., ~iWim~:il. I ; I: l,.i ,~~ Implementation :~ v" Concept Meeting \ v" Feasibility Study Customer Assurance Review & Evaluation I Building LOI Measure Community Ctr / Ice Arena Liahtina Uoarades Community Ctr / Ice Arena Variable Freauency Drives Community Ctr / Ice Arena Water Conservation Communitv Ctr / Ice Arena Boiler Operation Modifications Community Ctr / Ice Arena Vendmisers Community Ctr / Ice Arena Mechanicallmorovements Community Ctr / Ice Arena Controls Uoarades Community Ctr / Ice Arena Water Heater operation Fire Station Mechanical Repair Fire Station Control System Fire Station Boiler Operation Fire Station HW circ pump Fire Station Proarammable Stats Fire Station Liahtina Fire Station C02 Control Fire Station / CC / Ice Arena Guaranteed Lifetime Protection program 111\ I Building LOI Measure Building Solution Community Ctr lice Arena Liahtina Uoarades ECO 1 CC I Ice Arena Liahtina Uoarades Community Ctr lice Arena I'"'\~: .__ EC02 CC lice Arena I Fire Station Buildina Automation Community Ctr lice Arena W:J.ter Conscrv:ltion EC03 CC lice Arena Boiler Uporades Community Ctr lice Arena . . EC04 CC lice Arena Occupancy Sensors Community Ctr lice Arena Vendmisers ECOS CC lice Arena Mechanical Improvements Community Ctr lice Arena Mechanical Improvements EC06 CC lice Arena Guaranteed Life Protection Community Ctr I Ice Arena Controls Uoarades Community Ctr I Ice Arena Water Heater ooeration Fire Station n~~~:. Fire Station Control System Fire Station Fire Station 'AI . Fire Station ~. ... Fire Station ,-....:-- Fire Station C02 Control Fire Station I CC lice Arena Guaranteed Lifetime Protection program '1 l!Il ~ I I Measure ~ Metal Halide to fluorescent conversion in gym, workout area and arena ~ Occupancy sensors in gym Benefits ~ Energy savings ~ Operational savings ~ Improved light quality Rebate Availability Building - CC / Ice Arena l!!l l!!l il i III! I I I ~ 'J I 111;; !/I!J I ,j I I Existing workstation & network connection il ~ I Existing workstation & network connection il " '1 I I ,.,.. .... ""'" Existing workstation & network connection . . ~ :~w.~ ~ ~.,,-..... ~ iI Measure ~ Automated control ~ Linkageless burner control Benefits ~ Gas savings ~ Rebate Availability Building - CC lice Arena Measure ~ Occupancy sensors for vending machines and Teen Room speakers Benefits ., Energy savings Building - CC / Ice Arena III I I ~. I Measure ~ Repair free cooling operation I> Water heater timers Benefits ~ Improved air quality ~ Energy savings Building - CC lice Arena ..'~ ~~- IlII Ill! """"" I I Ill! I Measure ., Implement GLP program on mechanical equipment Benefits ., Energy Savings ., Lower operating costs l> Extended equipment life .. Fixed budget ~ Less equipment downtime ., Improved system reliability Building - CC / Ice Arena "'<-'-'-'-'--~,'''''-'''-'-'''''/-'-- ~~.... ~ Comprehensive Technical Study Final Proposal Finalize Costs / Savings / Rebates Prepare Proposal Present to City Council for Approval HARRIS -' City of Shakopee Financial Analysis BID .... . . ...~ - - '. .., ~ .. .... A: . .. . IiIIiIIiIiI . . ... - 4.8% . . . . -. 15 -. - . -.. 5.88% . . - . .. ... 3.88% ""., ,;,"',' \,',Progr~i:rl'Savings', ,'.." .... <.~ril'!l.lalGt.o~'~i::; Project Harris Service M & V :..:~'" ',Climlihlt,ive 'I:nel'gY:.Op~r~ti,(mal'Co.~t!Avoid. . Re6ate. ,.,' s.avtJ;l~i;-~~~i Investment (CC I Arena) Costs 'NerS~~i"g~; ,', savings', $J9;75~ .$,;"34,439$:.. 73,370, $: 10\914:;$:~:~;'1;;3:~~c'Z:g;J $ (38,168) $ (84,5QQ) $ - :$;;i;4'3;8:1:2:$2~:.812 '$;:'20;74:4,;::$<".35.473$;; 75,571 '., '. ,', ;.$;;::;:'.J;'1.~~1(~1{; $ (30,168) $ (87,035) $ - ;;$:';,:,1~4;5~5;'.$"< 38;397 ':$; .21',781)$\,.:,;'361'$37':,;$;; .'; 1'l.838' " ; "',. \$;}':::;~1:~p~~lS.Ef1 $ (30,168) $ (89,646) $ - ;,%YJ/1,(?','3'4'2."S" ,,54;7.39 'Np>;22;8;7Q;.$:::;.:::'~:~:'7.;6~3; 80i,1.'7~:. '. .."...' ;"$'j:2,;:):.:;~~~~~~Z~;i $ (30,168) $ (92,335) $ - {'$;;;}>:t8\:1}7~;:;$ ",,'OZ2;.9;12 {~$;;.24\:O~;~; i'$h'/::;3:8:\t6~;:.$;<:{84~'$7Ef ;,. ;"$\::,:';s;;tl~~@$.~~ $ (30,168) $ (95,1 Q5) $ -:;$:;~.2tX}.o8'::\:' \$', ;9~;993 . ;:$:":~$ii2~9;;:~.$\:',";:<,$~~.Q25::$;; ;,'.8p;056:' ;' ~;$t;;:t);';;;:.:t'~~~1([5}} $ (30,168) $ (97,959) $ - ~$::;:Z2iP6.9i 1$. :115;061 i;,$;;2f3'i~W'~Ii ~~,\Ni~;~';;i!4~':;12?:'}:$;,F;:;;::JJ3:~I~QZ: ." ~;$ri:~':~~~'i;\~'fi~~~!'ii1 $ (30,168) $ (1 QQ,897) $ - ;;;$';;;::"'\Z~~;~e}:: ,$: ,'. '.1g9;gOr :;$'; '?7f~9~;::$,;i;;:;::';'~?~::~56 ~ $: ,'" J1Q;g,~p;,;, ;;$.~>i':;T;~.m;~}l~~f!~~ $ (30,168) $ (1 Q3,924) $ - L$;;:;'::;26iZ~9,: ;$;: ; 165;5J)8 · {$:;,Z9,;;.1'SQj' i:$f;~1:;~!;fAr3';.62\7 ':$:":"\'{9Z;9~Z;, I:' ,:;,;,:;Ie:$':"':;;:\::j~I~~~7:\5~~ $ (30,168) $ (107,042) $ -'~$'2;}'2~;p;.49h$; . 194;849. I ,$,! ,,' 30~, !$:\~"''''''l i$' ~'('i'~~~'l ' :' 'T' '''~;''~'1l $ (30,168) $ (110,253) $ - ~,t;"j3POOlir1' it" ::12_ ':$C;32;1:?i1t:;;$;~:;;;,~;;4'6.i?8.;,;$\.<;,:9a~60g;: $ (3Q,168) $ (113,561) $ - :'$:.;,:.;~9.';3:~9'$ 2:58,2'81 ':'$:::,~~;:~~P't :~$i;::~U::~;$t:,'6:r:?,j $ (3Q,168) $ (116,968) $ - ;i$')':~':;~J5;8,8~;' c.$' ~Q4:;169' X$:':\~~'$;4:8WL~~'ll!~;ttl<;;;;~f~,!,!:Q2': $ (3Q, 168) $ (120,477) $ - ;;$t.,;:~~';p;4.5}i$332',714 , t:$,~:;37;.a9~~1i;Ji~r~!t\;'SQ;QZ~:i':;;$,:,r';~,;;-';i1'Q'70E~:il~ii' },$!~~;;::'/:i{}~~~y~~~~~ $ (30,168) $ (124,091) $ - ;;$:;2' 4;1~31~: i$, 374;.030 '$' 1 ::;"'9"4",,'a," ""CIj"':'i;';;\7;;'"2'''O!:l''''' . 'cF: ".:,,,;:.,, 'if''it'H'''9~8t', . ,"."""""'!;: ;,;,,, i'" Fi' ""CIji' ""ii';'"" :,<,>1:t!')V1"'8'7'& $ C3n 168) $ (127 814) $ .. "$'>/', """4' "4""ir'l6f "'$ ~ ", '41' '8'2'3'6~ ;S:'~ ,t,;;K:.~.,'g, .,\H}{~:bY%~ ;r:,,"-R~t;W:h~1~;vt~~;f-~3~<:, ,~~'g;~;; ~:;~~S#;;);;'};)Jl~f~t(;:01~\~}~~~ ~l1r <'\; ~;1:,i;;I:ri~::~~~Tri."j;:~t:tt?;:~()i}1:,:~:; ~{~%.jc:~:;):t~~;~124~~~~'ftL,,{(~~ v fl' - ~,~~ ~!?V < ~'. :; ~, :f ~,1fI, "J; T ,', ;:;';:~ " :.' .;' ,,< -' ' . . ;,:$:;:;/;~W;:<:>1~~ 'I'$;~~t;~:';~~.~55j;' {$i~::~;.~,,~~it1i~/~~~: r';ji;/l'.\i~\~ jj~t:;":"J~!9~t~~~~ $ - - $ (131.648) $ - :;$'" ;7:7..;;~87;; $ , . 49.'5i62'2 ;:$;:::4~1:'t~~ti ;;'$1~;ii~{;;~~t2.~~:~:~;;i;:~i?~:;;:i~qi~;iF~%'i\'i.:i;.0:;i;~':~$':i;C::;-~':;.~1:'Qt.t~{7t;: $ - $ (135.598) $ - :.;$,;:::j'8()i~3P; i$'. 5.76;1q,2 : ($;;\~;~ip~~~~~ ~{$itE~~:l'p~~~~~':. ~;$?:'ii:J(:;:>;;1~:1\,26~: ;:;:~;: ,:y.:"c/ ":: :$;;::j;~314~~~: $ - $ (139,666) $ _:$'\ ......... 8,;3:;8,0~ · ;,.. $' . 659,968 .:. :==::=~~,~:::~=: (452.51il ~ g:~::~l: _: r~=~;:~~:: Harris Companies Confidential 10/21/2008 H l!\' RRIS l+\ City of Shakopee - Project Breakdown m - # 8 'Id" 0 "t" Project ES' > Operational~rescriptive Custom ROI UI mg escrlp Ion I t t nergy avmgs S '" . . I R bt . > Rb t . nves men aVlngs .e a e '., '. e a e ': . . ' . . I >' " . ~. > > > . > . Community Center/Fire Station Project Development $ 11,500 >". > :'~ ". c >, >.' " "", EC01 Community Center Lighting Retrofit $ 81,911 $: '9,bT7" ~bA - ',. ,'." ~ 13.4% , ' . ..V~~ . . EC02 Community Center/Fire Station Building Automation $ 131,802$,'> > ,,' 8,238 .' '. ; ,.. 1,800' $ - - 6.3% EC03 Community Center Boiler Improvements $ 46,239$2,947 .' >,.' >,' '>"" .', $ - 6.4% >.. . ,. >. . . ,.' " > . EC04 Community Center Occupancy Sensors $ 4,194 $ > 914" ..,.>"'>..>,1.. ..' 21.8% EC05 Community Center Mechanical Repair $ 4,600$ '..., ,,(1A19). . ' $ - -30:9%' EC06 Community Center Guarateed Lifetime Protection $ 84,500.' .'. 91:.. .... I 127.6%. . · . .... ,..:1-t ' EC07 Community Center Chiller Repairs $ 39,715' .' . .... ..>.... :.' ". '1 .' I Pending Harris Mechanical Confidential 10/6/2008 . '~"'. /~.fllfl...liJ;w'~I'K~flJfllfl'I.'"'!~"" PUff' .~JAiif1'II'bir;\t..lil'..1IJ " .' ...../.....,......' 0k;..lti.fft~t-i~r.II'~.I.:;' . w.. )1& Zf1: 'W/ ' ,. ~~,@ITi%'.&'4ffij.,-. ii..Wg,"l:dii,;,.<, ",H'mK "",.~mt&j-:-,~,,~,~%;@;,-~~'Mf; I Attachment A - Scope of Work I Professional Services includes the development and engineering associated with the installation of the following Energy Conservation Opportunities (ECOs): ECO #1: Lighting Upgrades Community Center lice Arena The 98 existing 400W Metal Halide fixtures in Gym, Workout Area, and Ice Arena, will be removed and properly disposed of / recycled. In the arena, we will install sixty 4 lamp T5 High Bay fluorescent fixtures (one for one replacement) with wire guards. Also within the arena, we will replace eighteen 250W Metal Halide fixtures with 2 lamp T5 fixtures. In the gym and workout areas, thirty eight 6 lamp T8 High Bay fluorescent fixtures will be installed (one for one replacement). The gym will have one motion sensor on each side of curtain (total of two) to control all non-perimeter fixtures (total of 12 fixtures). Existing light level measurements will be taken prior to any installation. ECO #2: Building Automation Community Center The mechanical equipment in the Community Center is controlled by time clocks and pneumatic controls. Harris will upgrade the controls on the five main Air Handling Units (AHUs) to an electronic control system. Pneumatic damper actuators will be replaced with electronic actuators. Heating and cooling coil valve actuation will remain pneumatic, but will be controlled with an electronic signal. All components of the five main air handling units will be monitored and controlled by the new automation system. Carbon Dioxide (C02) sensors will be installed to control the amount of fresh air being introduced into each of the five main AHUs. In addition to the AHUs, nine Variable Air Volume (VAV) boxes and the chiller serving the AHUs will be monitored and controlled by the new automation system. This new automation system will have web capabilities so that anyone with proper authority will be able to view and manipulate the system from a remote location. The new automation system will not be integrated with other City buildings outside of the new fire station as a part of this proposal's scope. Fire Station The AHU in the lower level of the fire station is currently set to run 24 hours per day, even though occupancy is limited. The control of this unit is currently done with pneumatic controls and a timeclock. Harris will upgrade the controls on this AHU, and on the three boilers to an electronic control system. Pneumatic damper actuators and the heating valve actuator will be replaced with electronic actuators. All components of the air handling unit will be monitored and controlled by the new automation system. A Carbon Dioxide (CO2) sensor will be installed to control the amount of fresh air being introduced into the AHU. In addition to the AHU, the three boilers will be added to the automation system. This will allow the boilers to stage themselves more efficiently, and have alarm capabilities should one fail. The system will reset the supply water temperature leaving the boiler based on outside air temperature. This system will be set up to communicate with the new system at the Community Center. 1 ECO #3: Boiler Upgrades Community Center The existing boilers will be added to the automation system (descibed in FIM#2 above). The supply water temperature leaving the boilers is currently set at a constant 180 F. After this measure is implemented, the water temperature will be reset based on outside air temperature to reduce the consumption of natural gas. The building operator will have the capability to monitor boiler operation from a workstation. The scope and project investment associated with adding the boilers to the automation system is contingent on the approval of ECO #2 above as much of the reqired controls infrastructure is included in ECO #2. The boilers currently have burners with mechanical linkages to control the fuel to air mixture for the combustion process with one signal. This linkage will be removed, and separate controls will be installed to more efficiently regulate the fuel and air independently to operate at a more efficient mix. The Iinkageless control will come with a control panel for each of two burners. ECO #4: Occupancy Sensors Community Center The facility contains (12) vending machines to dispense non-perishable beverages and snacks. This solution will install occupancy sensors on these units to limit their energy consumption when immediate area is unoccupied. The speakers in the Teen Center have been witnessed to be left on for extended periods of non occupancy. Motion sensors will be installed to turn off the speakers during periods of inactivity in the teen center. This will ensure that the speakers are turned off every night, and during any extended periods of inactivity ECO #5: Mechanical Repairs Community Center The dampers controlling the mix of return air and fresh air being sent out to spaces are not working in the office and locker room units. As a result, these units are recirculating building air, with only minimal "'eaked" fresh air being introduced into occupied spaces. The dampers will be adjusted $0 that they operate properly, and introduce the appropriate amount of fresh air into these spaces. The two water heaters dedicated to the ice resurfacer maintain a temperature of approximately 122F all year. Harris will install and program a timeclock to disable the water heaters during the one month when there is no ice in the arena. ECO #7: Mechanical Services Guaranteed Lifetime Protection Agreement Community Center lice Arena Our Guaranteed Lifetime Protection (GLP) is a solution guaranteed to fix your ongoing maintenance costs on the equipment we cover. This comprehensive program includes extensive preventive maintenance to ensure proper and efficient operation of your equipment, as well as all repairs, emergency service, and complete system replacement when necessary. This solution was designed for clients who aim to ensure a predictable budget, reduce liability, and have complete peace-of-mind. The annual agreement amount guarantees that you will not have to pay anything more for unexpected problems, which will ultimately lower your overall facility costs. Added benefits include extended equipment life, reduced operating problems, lower administrative costs, future equipment cost avoidance, and reduced energy costs. Harris Mechanical Service, LLC - Proprietary 2